Net asset adjustment: The net asset value of the target entity is determined at the time of completion (i.e. the target entity`s aggregate liabilities are deducted from its aggregate assets). The rest of this article focuses on the practical aspects of closing accounts from an accounting perspective. First, we will see how to tackle the pre-subscription process in order to codify the results of due diligence in the PRICING mechanism at the SPA. We will also look at the practical aspects of managing a well-managed post-announcement process in order to prepare or audit closing accounts and agree on the final share price. While this can be a useful mechanism for achieving a fair price, buyers and sellers should also bear in mind that closing accounts can also lead to lengthy and costly litigation if the relevant PPS clauses are not given sufficient attention. Given the proliferation of closing boxes in Europe, some doers (and consultants) have less experience in closing account transactions. However, given the likely continued importance of closing accounts, it is important that stakeholders understand the process and the risks and opportunities associated with it. From the buyer`s perspective, it is likely that preparation for the closing process will take place in addition to other projects for other financial matters after closing. B, for example, the preparation of the opening balance sheet and the financial integration of the enterprise. However, it is recommended that the buyer consider the closing accounts as a full-fledged financial year, especially when he is responsible for the preparation of the draft closing accounts. Normally, buyers have only limited access to managing goals between signing and completion, and effective planning becomes even more important. While the process of finalizing the share price to be paid in the final accounts is longer and there may be uncertainties in relation to locked box, the clarity of the SPA and the careful planning and implementation of the closing process should minimize the risk of a lengthy dispute or debate.
Doing this correctly can mean the difference between a quick and fair result and a long quarrel that costs the parties time, money and goodwill.